EUR/USD outlook still looks neutral – UOB

The research team at UOB Group remains neutral on EUR/USD, while a close below 1.1120 should shift the stance to bearish in the next weeks.

Key Quotes

“Instead of extending higher as expected, EUR dropped back quickly and closed on a weak note. The decline appears to have scope to retest the 1.1100/05 support but this is a strong level and may not yield so easily (next support at 1.1070)”.

“As indicated yesterday, despite the strong rebound post-nonfarm payrolls, the undertone for EUR is still negative. Based on the current price action, a daily closing below 1.1120 is enough to indicate the start of a bearish phase (for an immediate target of 1.1050). Overall, this pair is expected to remain under pressure unless it can move and stay above 1.1200 within the next few days”.